This week, Zacks.com features five stocks with strong efficiency metrics for investors.
Efficiency is key, right? It basically means how well a company uses its resources to make money. Zacks points out that companies with high efficiency are often better bets for returns.
They break down a few important efficiency ratios to look at. For instance, the receivables turnover ratio shows how well a company collects its debts. A high number here is a good thing. Then there’s asset utilization, which tells you how effectively a company turns its assets into sales.
Inventory turnover is another big one. It shows how well a company manages its stock. If a company has a high turnover, it means they’re selling products quickly. Lastly, the operating margin gives insight into how well a company controls its expenses.
So, if you’re looking to boost your portfolio, these five stocks might be worth checking out. YPF is all about energy in Latin America, Telefonica is a major player in communications, and Penumbra focuses on healthcare innovations. Deckers is known for its outdoor footwear, while Abercrombie offers trendy casual wear.
If you want to dive deeper into these picks, Zacks is offering a free trial for their Research Wizard tool. It’s user-friendly and can help you find more investment gems. Sounds like a good opportunity to explore!
